HR Department: Risk Management and Leadership Approaches

HR Article Analysis: Crisis management: prevention, diagnosis, and intervention
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Summary
Kash & Darling’s “Crisis management: prevention, diagnosis, and intervention” generally focuses on the dynamics of today’s business environment. According to the authors, it is no longer a question of “if” the business will face a crisis but “when,” “what,” and how prepared the company is to deal with a crisis. As defined by the authors, a crisis refers to any unplanned event that causes injuries and deaths to employees and customers or the public; causes business to close; triggers environmental damage; triggers slightly to severe business disruption; disrupt a company's financial standing (Kash & Darling, 1998). Crisis, be it earthquakes, financial crisis, and others, have a significant impact on the company's functioning.
Crisis management remains a fundamental issue that allows a business to set up a series of functions and processes to identify, study, forecast crises, and set up prevention, coping, or mitigation strategies. According to the author, crises are more manageable when businesses prepare for them in advance. Crisis can occur anytime, and businesses caught unprepared are likely to suffer more than those who prepare. By reviewing different crises in today’s businesses, the author presents the anatomy of crisis in a schematic manner (Kash & Darling, 1998). More so, the author recommends key preventive and intervention measures and argues that the overall ability to acknowledge a crisis and communicate it with critical stakeholders sets the basis for better planning of prevention, diagnosis, and crisis interventions.
Risk Management Approaches
Some of the major companies that experienced crisis are Nike, McDonald, and Baring Bank UK. Nike’s new design on its basketball shoes sparked protests from Muslims who argued that the logo resembled the Arabic word Allah. This triggered product boycotts, forcing Nike to recall about 38,000 pairs of shoes and even...